Christian Microfinance: Which Way Now?
by Brian Fikkert

Abstract:
Christians having been working in microfinance--the provision of financial services to the poor--for several decades. After providing a biblically-consistent framework for thinking about poverty and its causes, the paper evaluates the microfinance industry's impacts on that poverty. The paper argues that the emphasis on credit--rather than on savings services--has prevented microfinance from having much impact on the poorest of the poor. In addition, under pressure from secular donors and the forces of competition, Christian microfinance institutions find it difficult to incorporate evangelism and discipleship into their programs. The paper considers six possible options for the future work of Christians in this area, evaluating the pros and cons of each. Of the various options, promoting informal savings and credit associations appears to have considerable potential to meet both the spiritual and financial needs of very poor people even in the remotest areas.